The production of Volkswagen Passat and the Honda Accord have been stopped. One of the main reasons for the production of these two cars stopping is the low demand for these cars. The company had to stop production as the sales figure estimated by them were nowhere close to what they had thought. Though in the case of Honda, it was seen that with the launch of Civic in early 2013, much of the attention had shifted to the cars that particularly belong to the lower segment. This shift was clearly a tragedy for the company as a result of which the Honda Accord could not manage to get the attention of the masses.
The Sales figures for these two cars are depressing with a sale of around 215 units of the Honda Accord from June to November, while Volkswagen managed to sell 235 units of Passat in the third quarter of the year. These figures were clearly not something that both the companies could carry on their production with.
On the other hand, Skoda Superb, has done exceptionally well in the market with a sale of over 507 units in the third quarter itself. The increase in the cost of inputs, along with the value of rupee decreasing in the international market, were also some of the factors which lead the company to put an end to the production. Honda and Volkswagen were demoralized with the decreasing profit margins, poor sales and the change in consumer preferences with their interest being inclined towards cars in the affordable range. Both companies also failed in their attempt to increase the sales by offering attractive financial schemes.
